Professional Documents
Culture Documents
in India
Team 4
Scope
Entry Structures
Incentives
Definition
GOVERNMENT ROUTE
(FIPB):
Entry Structures
INCORPORATING A
COMPANY IN INDIA
can be a private or public limited company. Both wholly owned & joint
ventures are allowed. Private limited company requires minimum of 2
shareholders.
LIMITED
LIABILITY
PARTNERSHIPS:
Allowed under the Government route in sectors which has 100% FDI
allowed under the automatic route and without any conditions.
SOLE
PROPRIETORSHIP
/PARTNERSHIP
FIRM
EXTENSION OF
FOREIGN ENTITY
Liaison office, Branch office (BO) or Project Office (PO). These offices
can undertake only the activities specified by the RBI. Approvals are
granted under the Government and RBI route. Automatic route is
available to BO/PO meeting certain conditions.
OTHER
STRUCTURES
Resident Outside
India (Except
Pakistan)
NRIs , Residents
in Nepal and
Bhutan
Overseas
Corporate Bodies
(De-recognized
with effect from
2003)
Petroleum
Refining by PSU 49%
Satellites 74%
Teleports 74%
Private security
agencies
49%
FM Radio - 26%
Private sector
74%
Public Sector
Commodity exchange
49%
Insurance 26%
Defence 49%
Infrastructure companies
49%
TV channels(News) - 26%
Merits
Competition
De-Merits:
INCENTIVES
CENTRAL GOVERNMENT INCENTIVES :
Exports incentives like duty drawback, duty exemption/remission schemes, focus products &
market schemes etc.
Areas based incentives like unit set-up in north east region, Jammu & Kashmir, Himachal
Pradesh, Uttarakhand.
Each state government has its own incentive policy, which offers various types of incentives
based on the amount of investments, project location, employment generation, etc. The
incentives differ from stateto state and are generally laid down in each states industrial policy.
The broad categories of state incentives include: stamp duty exemption for land acquisition,
refund or exemption of value added tax, exemption from payment of electricity duty etc.
Thank you